Tesla’s CEO, Elon Musk, is reconsidering the decision not to sell cars in Saudi Arabia after a significant drop in global sales. Disagreements with the Saudi Sovereign Investment Fund led to past withdrawal. With stock prices also declining, Musk may need to engage the Saudi government for potential market access.
In 2018, Tesla’s Chief Executive Officer, Elon Musk, opted against selling the company’s electric vehicles in Saudi Arabia due to disagreements with the Sovereign Investment Fund regarding sales strategies. However, amidst a drastic decline in sales, with a noted 70% drop in countries such as Germany and the USA, Musk is reconsidering this stance and evaluating the potential of entering the Saudi market to alleviate unsold inventory.
The earlier decision to withdraw from the Saudi market stemmed from an inability to reach an agreement with the Saudi government, despite having secured funding to privatize operations there. Musk’s previous approach may now prove regrettable, as the company seeks significant market opportunities like Saudi Arabia to recuperate from its declining sales figures.
Tesla’s position in the stock market has also suffered, with shares falling over 5% on Wednesday and showing only a slight recovery of 0.44% in premarket trading on Thursday. The current sales crisis has inundated the secondary market with electric vehicles due to unprecedented trade-ins, which are aggravated by global protests, particularly in Europe, against Musk’s political engagements and company layoffs.
Public sentiment against Tesla and its CEO is rising, suggesting the stock might continue to decline. Therefore, for the sake of improving sales, Musk may consider reconciling with the Saudi government to secure a foothold in this promising market.
In summary, Elon Musk’s past decision to forgo sales in Saudi Arabia is being reconsidered due to plummeting sales figures globally. As Tesla faces a crisis evidenced by its declining stock prices and a saturated secondhand market, exploring opportunities in Saudi Arabia could be essential for revitalizing its sales. Addressing past disagreements with the Saudi government may prove vital for Musk and Tesla’s future performance.
Original Source: www.fxleaders.com
